Investors' Soapbox PM

Surface Could Be the Next Zune

Sterne Agee says Microsoft needs to have more aggressive pricing.

October 18, 2012

Sterne, Agee & Leach

Microsoft finally announced long-awaited pricing on its Surface tablet starting at $499 and $599 with its innovative cover-keyboard.

Our view on this is mixed. On one hand, this should give breathing room for its hardware partners to price more aggressively. But we believe a key risk is that Surface's high pricing could prove to be a fatal mistake and relegate it to be a niche No. 4 or No. 5 player....